The EU is determined to bolster the continent’s manufacturers and reduce dependence on China as it spends on the green transition. That will require big changes
s very core. Theis in essence the deepest and most comprehensive free-trade agreement in the world. Restrictions on subsidies, along with common rules and regulations, some extremely stringent, ensure a level playing-field. This market-mindedness is reflected in the fact that thehas long had a carbon-trading scheme for industry and electricity generation, which will in time be extended to heating and transport. Theis relatively open to trade and investment from the outside world, too.
The most significant rule changes involve experiments with protectionism. The commission wants national leaders to agree to domestic-production targets, something at odds with the bloc’s usual market-minded approach. At the moment these are mere ambitions. They state that, among things deemed “strategic technologies”, including heat pumps and solar panels, theshould mine 10% and refine 40% of the resources needed for the green transition.
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